Libra will allow Facebook to vastly increase its ad prices, explained Mark Zuckerberg. In the past week, Zuckerberg has been in the news for his phone conversation with the President of the United States and for his other conversations related to how the social media platform is dealing with misinformation about the George Floyd protests, COVID-19 pandemic and upcoming 2020 election.
Zuckerberg has famously allowed the President of the United States to go unchecked with what he posts on social media. Zuckerberg will not censor the posts, remove them or fact check them because he says it is in the national interest for everyone to be able to read communications from the President of the United States. Facebook has been in the news for other reasons lately, too.
The cryptocurrency community is starting to get more information about what Libra will look like. There is also new information coming out about how the stable coin of Facebook will make money. Zuckerberg says that the digital currency will make ad prices on Facebook soar. He made this announcement during an annual shareholder discussion. However, some observers note that the economic downturn could put a damper on how much people are willing to pay for an ad.
In the conversation, Zuckerberg said Libra will allow consumers to easily make impulsive purchases. As a result, companies will have to be ready to pay much more when they make a bid for Facebook advertising space. In 2019, Facebook's income from selling ads in the news feeds of users was an astounding $69.6 billion. That amount was 98 percent of the income Facebook earned for 2019.
Facebook is also enhancing the details and aesthetics of the project in order to make federal regulators happy. In other updates, Facebook has rebranded its digital wallet to Novi from Calibra. A Facebook representative told members of the media that consumers were getting confused because the name Calibra sounds a lot like Libra, the digital coin. Facebook's administrators and the leaders of the Libra project hope the change will create more of a separation between the two digital entities.